Switching to the euro

Malta to enter euro zone, but not everybody's pleased, Grit Hofmann writes in Germany's Deuthsche Welle:

..With Malta located only 120 kilometers (74.5 miles) from Sicily, the people on the island could observe how Italian business owners used the switch to the euro in 2002 to jack up the prices of their products. But Maltese business owners now want to reassure island inhabitants that the same won't happen on their island. In the capital Valletta's busy Republic Street, shops windows display blue and green signs marked with the word "fair" -- meaning that prices are not supposed to increase when the currency changes. In addition to the tourism industry, trade is also important for the island.

Peter Darley, managing director of VGT, the largest shipping company at Grand Harbour in Valletta, said that the euro will not change his business much. However, he does anticipate that prices of everyday goods will increase. "The government is trying to control that," Darley said. "In the long term, the euro will be good for Malta. "Like Darley, many of the Maltese people hope joining the euro zone will stimulate their economy. They envision profiting from the switch since, right now, they earn only around one-fifth of what average EU citizens do each year.